Parent company of Regus co-working spaces files for creditor protection
Posted September 3, 2020 5:14 pm.
Last Updated September 3, 2020 5:38 pm.
TORONTO — Coworking company IWG, which owns on-demand office brands Regus and Spaces, is seeking creditor protection in Canada.
The company says it has reached an impasse in negotiations with some of its landlords, after the COVID-19 pandemic forced many occupants to either work from home or offer late payments.
Without creditor protection, the company says it could face a “lockout” from landlords, forcing it to sell its property and fall behind on bills.
The Aug. 30 request under the Companies’ Creditors Arrangement Act was posted online by trustee KSV Advisory Inc.
It comes after the U.S. arm of IWG asked for Chapter 11 relief with the United States Bankruptcy Court on Aug. 17.
The Canadian branch of IWG has 85 leases in Canada, and $5 million in liabilities.
This report by The Canadian Press was first published Sept. 3, 2020.
The Canadian Press
